Zacks Sell List Highlights: Republic Airways Holdings Inc., Linn Energy, LLC, TiVo Inc. and DG FastChannel Inc.
Since inception in 1988, the S&P 500 has outperformed the Zacks #5 Rank List of Stocks to Sell Now by 80% annually (+2% vs. +10%). While the rest of Wall Street continued to tout stocks during the market declines of the last few years, Zacks told investors which stocks to sell or avoid.
Here is a synopsis of why RJET and LINE have a Zacks Rank of #5 (Strong Sell) and should most likely be sold or avoided for the next one to three months. Note that a #5 Strong Sell rating is applied to 5% of all the stocks in the Zacks Rank universe:
Republic Airways Holdings Inc. (Nasdaq: RJET) recorded a 62% year-over-year decline in third-quarter profit. On Nov 4, the company reported earnings 19 cents per share, 34% behind the Zacks Consensus Estimate. Revenues declined 6.7% year over year to $359.6 million. The full-year average forecast moved down 3 cents to $1.03 per share in the last 30 days as 1 analyst out of 5 pulled back on expectations.
Linn Energy, LLC (Nasdaq: LINE) posted third-quarter earnings of 38 cents per share last month that missed analysts' expectations by 2 cents. Earnings dipped 15.56% compared to last year's profit of 45 cents per share. The Zacks Consensus Estimate for the current year is pegged at a profit of $1.68 per share that dropped from $1.76 cents over the past month as both covering analysts cut back on estimates.
Here is a synopsis of why TIVO and DGIT have a Zacks Rank of 4 (Sell) and should also most likely be sold or avoided for the next one to three months. Note that a #4 Sell rating is applied to 15% of all the stocks ranked by Zacks;
TiVo Inc. (Nasdaq: TIVO) announced a third-quarter loss of 6 cents per share on Nov 24, which was wider than last year's loss of 1 cent. Analysts expected a loss of 5 cents per share. Net revenues plunged 11.8% to $56.9 million. The Zacks Consensus Estimate for the current year widened by 4 cents to a loss of 24 cents per share in the last 30 days as a result of downward revisions by 5 out of 9 analysts.
DG FastChannel Inc.'s (Nasdaq: DGIT) third-quarter earnings per share of 22 cents, reported last month, came in a penny shy of analysts' expectations. In the year-ago quarter, the company had earned a profit of 38 cents per share. For the current year, the Zacks Consensus Estimate slipped by a penny to 78 cents per share over the past month. Next year's estimate fell 5 cents to $1.19 per share during that time.
Truly taking advantage of the Zacks Rank requires the understanding of how it works. The free special report; "Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions" is available to provide this insightful background. Download a free copy now to prosper in the years to come at http://at.zacks.com/?id=93
About the Zacks Rank
Since 1988, the Zacks Rank has proven that "Earnings estimate revisions are the most powerful force impacting stock prices." Since inception in 1988, #1 Rank Stocks have generated an average annual return of +27%. During the 2000-2002 bear market, Zacks #1 Rank stocks gained +43.8%, while the S&P 500 tumbled -37.6%. Also note that the Zacks Rank system has just as many Strong Sell recommendations (Rank #5) as Strong Buy recommendations (Rank #1). Since 1988, Zacks Rank #5 stocks have significantly underperformed the S&P 500 (-0.9% versus +9%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks "Profit from the Pros" e-mail newsletter offers continuous coverage of Zacks Rank Buy stocks and highlights those stocks poised to outperform the market. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=94
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=95
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
|Printer friendly Cite/link Email Feedback|
|Date:||Dec 17, 2009|
|Previous Article:||Pentair Affirms 2009 Sales and EPS Guidance; Company Introduces 2010 Earnings Outlook.|
|Next Article:||Zacks Analyst Blog Highlights: Intel Corp., Hewlett Packard Company, Dell Inc., International Business Machines and Advanced Micro Devices.|